Random Absurdities– Pt I.

By Mike Cronin

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Businesses can come under suspicion of discrimination if they don’t hire minorities and the “differently oriented” in proportion to the surrounding population…but they dare not ask what an applicant’s orientation, religion, race, ethnicity, etc. might be, because that could indicate an intent to discriminate.

If you want to keep what you earn, you’re greedy, but if you want to take what isn’t yours so you can buy votes you don’t deserve, you can get elected to high office.

Common Core in math is akin to asking a baby on the verge of walking to learn all of the anatomy and physiology of his little legs and having him explain to you what processes are going on with his muscles, bones, and balance while he is taking his first steps.

The tariffs and taxes on sugar make it twice as expensive here as in other countries.  The tariffs are meant to protect jobs in the sugar-raising industry. Instead, they cause loss of jobs in the industries that use the refined sugar, or force them to switch to high fructose corn syrup.

Ignorance of the law is no excuse…but no one can know of all the laws, because there are more than a person can read.  Worse yet:  even if you are aware of and follow a given law, you may be violating a different, contradicting law.  There is no law that obligates Congress to check whether proposed legislation might contradict current statutes.

Many people have to prove they do not take illegal drugs in order to get hired for a job. Once employed, they will have income taxes confiscated from their paychecks.  Money from those taxes will then be transferred to people relying on “government” assistance to make ends meet – people who don’t have to prove they are drug-free.  In fact, for some, the very reason they are receiving government assistance is because they have destroyed their employment eligibility through illegal drug use!

We send people to prison, comforting ourselves that the guilty are being punished for their crimes.  They will certainly not enjoy their stay, but while they are in, all too often they will learn to be even more ruthless, violent, and/or skilled at criminal activity.  Then they will get out and go right back to their predatory ways – but with a far greater degree of criminal impact.

Government-backed student loans, financial aid, and Pell grants are meant to help students cope with the high costs of post-secondary education.  Instead, by making it easier for more people to pay for school, the demand for higher education goes up…which drives the prices up. Put another way: even as Johnny gets his college loan and pays for school this year, the school raises its rates for next year.  Now Sally gets a bigger loan and pays for the higher tuition. The school raises its rates for next year. Now Jenny gets a bigger loan…lather, rinse, repeat.

We are supposed to equate “rich” with “high income,” resent high income earners, and demand that they pay higher taxes. People with high salaries have to pay high income taxes, but people with high net worth can live quite well off of the gains their investments make, and pay capital gains taxes instead of income taxes. (Capital gains taxes are much lower than the highest income tax bracket.) For example, the highest income tax rate is 35%, but the long term capital gain tax rate is 20%.  This can lead to a situation where a person who works his buns off and makes $500,000 in income (a cardiologist, perhaps) pays $175,000 in federal income tax, leaving $325,000. (This scenario is only about federal income tax vs capital gains tax – we’ll leave social security, states taxes, deductions, etc., out of the equation for simplicity’s sake). Now consider a person with $5 million in net worth invested wisely. Perhaps this person inherited the money.  Suppose this person makes capital gains of 10% per year – pretty good in this economy.  10% of $5 million is $500,000 – the same as our doctor’s income.  But capital gains taxes are only 20% ($100,000), not 35%.  That means the wealthy guy living a life of leisure off his investments pays $75,000 per year less taxes than the “rich” guy who worked his rear end off…on the same amount of taxable income!

 

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